A. Availing of a temporarily discounted home loan without taking a protracted view of oneís financial position is not advisable. One should be aware of the manner in which oneís finances will be affected after the teaser period is over and real-time lending rates kick in.
A. That depends on oneís actual objectives and level of need. If one is a first-time home buyer, attempting to time the market makes little sense. Any correction will be a brief phenomenon, and prices inevitably rise again. This is a risky game that only investors should play.
A. The stamps are required to be purchased in the name of any one of the executors to the Instrument.
A. Yes, a POA can be either revocable or irrevocable, depending on what sort of a POA one has made.
A. Several options are available for saving capital gains. For example, in the first place invest in a residential house property or a flat to make investment so as to see that capital gains are exempted. Likewise, if a person were to make the investment in REC or NHAI bonds then also he enjoys complete exemption from the long-term capital gain payable by him in respect of capital gains due.
A. While purchasing a property, you have to look at the approved layout plan, approved building plan, ownership documents, carryout title search, etc.
A. There are three ways to invest in commercial real estate - directly buy office space from a developer, buy shares of a commercial developer from the stock market, or invest in a real estate fund focused on commercial real estate. As the quantum of investment is usually huge, the prospective buyer needs to take more informed decisions.
A. The fundamental aims of any residential property investment should be to maximise yield as well as capital gains and to reduce the risk as far as possible. To illustrate, renovating and embellishing a property makes it eligible for a higher rent, which means maximised yield. Property investment aimed at capital gains involves buying real estate cheap and selling it at a higher rate, thereby maximising one's ROI. An astute investor will also buy a well-located property at a high price if the rental market is booming, since this makes it possible to rent it out for as long as it takes price to rise again.
A. The rental yield for commercial property is usually 9-12%. In contrast, the yield for residential property is much lower at 3-4%.
A. Purchasing a flat on a POA basis is not permitted.
A. The risk factor in real estate investment lies in the possibility of buying at a higher price and having to sell at a lower one in a depressed market. It is also risky to try time the market to discern the 'best' time to invest. Much like in the stock market, it is impossible to predict the point of lowest ebb in the real estate market. The danger in delaying investment too long is two-fold - firstly, one may lose out on the best properties, and secondly, the market may pick up ahead of one's predictions, meaning that the lower rates may no longer be available.
A. For the purpose of Real Estate the Long-term Capital gain would be only if you hold the property for more than three years, then it is subjected to tax @20%. In case you sell the property in less than three years time then it would become short-term Capital Gain and the same is required to be taxed at the prevailing tax schedule of the rate applicable to the assessee depending on his other incomes.
A. A freehold property flat is one where there is a whole and sole owner/s, ownership is full and unconditional and there is no lessor / lessee involved.
A. Market value of property is the price at which there is a willing buyer and a seller agreeing to the transfer the property at an armís length transaction. Stamp duty is levied on the ready reckoner rate or the agreement price, whichever is higher.
A. Carpet Area: Carpet Area of a property is defined as the net usable area from the inner sides of one wall to another. Carpet Area comprises of the carpet area of the demised premise, toilet areas within the demised premises, AHU room/s within the demised premises and dedicated service areas for the demised premises.
Built-up Area (BUA): BUA consists of carpet area, area covered by inner and outer walls and additional areas mandated by the authority such as flower beds, dry balcony etc.
Super Built-up Area (SBUA): SBUA consists of BUA and the proportionate area under the common spaces of a building like lobby, staircases and elevators.
A. The instruments like Agreement to Sell, Conveyance Deed, Exchange of property, Gift Deed, Partition Deed, Power of Attorney, settlement and Deed and Transfer of lease attract Stamp Duty on market value of the property.
A. The buyer is liable to pay the stamp duty.